poollounger

Can anyone shed light on the pros and cons of choosing sterling/euros when withdrawing money from an ATM in Spain, and now when paying for goods buy credit or debit card ?? I never know which to choose and just decide at random. What is the purpose of offering a choice ??

montgomail

When I draw euros, I elect my bank (Nationwide) to fix the exchange rate as they offer commercial rates. Otherwise, I think it is a bit of a lottery - unless any of the others know different?

Fred James

It's known as "Dynamic Currency Conversion" and can also apply to card transactions in shops etc.

The idea is that some people have no idea what a Euro is so they feel more comfortable withdrawing a Sterling amount (which of course is paid in Euros).

The problem is that it will almost certainly involve poorer exchange rates being applied to the transaction.

montgomail

Thanks for clarifying - I think I misinterpreted the question. I was, of course, thinking of the option to use the ATM's exchange rate on the day of withdrawal or allowing your own bank to apply the rate later.

dazzle

Always opt for the local currency option as the exchange rate for any other currency is quite heavily loaded.

Use a Nationwide debit card and you win all ways as Nationwide are one of the few banks who don't add a charge for using cards abroad.

poollounger

Dazzle I always use my Nationwide cards in Spain, got 1.47 last week on credit card purchase. Does this mean with a Nationwide card it is irrelevant whether I choose sterling or euro ?

dazzle

No because it's the owner of the ATM who does the loading

Fred James

Yes, it is the local bank who apply the loading if you ask for Sterling amounts which is why you must always ask for Euros.